Market Analysis: EUR/GBP Awaits CatalystMarket Analysis: EUR/GBP Awaits Catalyst
EUR/GBP is consolidating and might aim for a fresh increase above 0.8800.
Important Takeaways for EUR/GBP Analysis Today
- EUR/GBP is trading in a positive zone above the 0.8750 pivot level.
- There is a short-term declining channel forming with resistance near 0.8805 on the hourly chart.
EUR/GBP Technical Analysis
On the hourly chart of EUR/GBP, the pair started a consolidation phase after it failed to surpass 0.8830. The Euro traded below 0.8800 and 0.8790 against the British Pound.
The EUR/GBP chart suggests that the pair even tested 0.8775. A low was formed at 0.8773 and the pair is now correcting some losses. It climbed above the 23.6% Fib retracement level of the downward move from the 0.8816 swing high to the 0.8773 low.
The pair is now facing resistance near 0.8795 and the 50-hour simple moving average. The next hurdle sits at 0.8805. There is also a short-term declining channel forming with resistance near 0.8805. It coincides with the 76.4% Fib retracement.
A close above the 0.8805 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8830. Any more gains might send the pair toward 0.8850.
Immediate support sits near 0.8770. The next area of interest for the bulls might be 0.8760. A downside break below 0.8760 might call for more downsides. In the stated case, the pair could drop toward 0.8720.
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